As Young High-Income Earners Increase... Rising Number of Monthly Rents Over 1 Million Won

The highest-priced property is Lotte World Signiel Residence Officetel... Monthly rent 16 million won

[Asia Economy Reporter Onyu Lim] As single-person households and young high-income earners increase, the number of high-priced rental properties with monthly rents exceeding 1 million KRW is rising in the small housing market.

According to Dabang on the 15th, a full survey of listings registered on the application as of the 4th in Seoul for detached (multi-family), multi-unit, row houses, and officetels showed that properties with monthly rents of 1 million KRW or more accounted for 6.4% of the total. This is an increase of 2.6 percentage points (p) compared to 3.8% in 2019, two years ago.

By type, among all officetels, listings with monthly rents of 1 million KRW or more accounted for 14.48%, up 7.1%p from 7.38% in 2019, and three-room listings increased by 10.09%p to 25.21%. Two-room (6.72%→10.8%) and one-room (1.45%→3.23%) listings also showed slight increases.

Among three-room listings, the proportion of properties with monthly rents in the 1 million KRW range increased the most. By monthly rent amount: ▲100~200 million KRW increased by 5.83%p (9.29%→15.12%) ▲200~300 million KRW by 0.75%p (2.88%→3.63%) ▲300~500 million KRW by 2.82%p (1.87%→4.69%) ▲500~700 million KRW by 0.36%p (0.58%→0.94%) ▲700 million KRW or more by 0.32%p (0.5%→0.82%).

For officetels, the proportion of listings with monthly rents of 100~200 million KRW increased significantly by 5.15%p (5.82%→10.97%), followed by ▲200~300 million KRW 0.81%p (0.91%→1.72%) ▲300~500 million KRW 0.63%p (0.52%→1.15%) ▲500~700 million KRW 0.03%p (0.03%→0.06%) ▲700 million KRW or more 0.48%p (0.09%→0.57%).

Two-room listings with monthly rents in the 1 million KRW range increased by 3.23%p from 6.19% to 9.42%, and one-room listings increased by 1.73%p from 1.4% to 3.13%.

Meanwhile, checking one-room listings with monthly rents of 1 million KRW or more by the 25 districts of Seoul, Gangnam-gu accounted for an overwhelming 89.6%, followed by Seocho-gu at 5.6%, Songpa-gu at 1.8%, and Jongno-gu at 1%.

Also, among the listings currently registered on Dabang, the highest monthly rent was found at the ‘Lotte World Signiel Residence’ officetel located in Sincheon-dong, Songpa-gu, Seoul. The listing registered last month is located on the 46th floor with an exclusive area of 200㎡, with a deposit of 300 million KRW and a monthly rent of 16 million KRW.

Park Sung-min, Director of Business Marketing at Station3 Dabang, said, “We are paying attention to the recent registration of high monthly rent listings on our app, which mostly features properties for 1-2 person households,” adding, “With the rapid increase of single-person households and the rise of young high-income groups such as short-term foreign residents, high-income YouTubers, and celebrities in Korea, it seems that supply is also being made to meet the demand for such high-priced rental properties in the housing market.”

This content was produced with the assistance of AI translation services.